1 Company overview
 
 Dynamatic Technologies Limited (the Company) was incorporated in 1973
 as Dynamatic Hydraulics Limited under provisions of the Companies Act,
 1956 (''the Act''). In 1992, the name of the Company was changed to
 Dynamatic Technologies Limited. The Company is in the business of
 manufacturing automotive components, hydraulics gear pumps, aerospace
 components and wind farm power generation. The Company is listed in
 India with National Stock Exchange and Bombay Stock Exchange.
 
 Rights, preferences and restrictions attached to equity shares:
 
 The Company has a single class of equity shares. Accordingly, all
 equity shares rank equally with regard to dividends and share in the
 company''s residual assets. The equity shares are entitled to receive
 dividend as declared from time to time. The voting rights of an equity
 shareholder on a poll (not on show of hands) are in proportion to its
 share of the paid-up equity capital of the company.  In the event of
 liquidation of the Company, the holders of equity shares will be
 entitled to receive any of the remaining asset of the Company after
 distribution of all preferential amounts, if any. The distribution will
 be in proportion to the number of equity shares held by the
 shareholders.
 
 * Secured by hypothecation of vehicle. The amount is payable in 36
 monthly instalments from the date of purchase. The rate of interest for
 the outstanding vehicle loan ranges from 9.75% p.a to 11.50% p.a.
 
 ** To promote the industries in backward area (i.e. @
 Irrungattukkottai) Government of Tamil Nadu, announced a sales tax loan
 facility. To avail the facility, the Company has entered into an
 agreement with the Sales tax department for deferring payment of sales
 tax collected during financial year 2001-02 to 2005-06. The deferred
 amount will be repaid by 2014-15. The amount repayable in 2012-13 is
 Rs.186 lacs and accordingly disclosed as current liability.
 
 *** Deposits from shareholders carry interest rate in the range 10-11 %
 and are repayable within 1- 3 years from respective date of deposit.
 
 # Deposits from others carry interest rate in the range 10-11 % and are
 repayable within 1- 3 years from respective date of deposit.
 
 * Cash credit from banks carry interest ranging between 10.50% - 15.25%
 p.a., computed on a monthly basis on the actual amount utilized, and
 are repayable on demand. These are secured by pari passu charge by way
 of hypothecation of stock and book debts of the Company.
 
 ** The Company has taken foreign currency buyer''s credit, which carry
 interest ranging between 2.55% - 4.25% p.a and are renewable at 6
 monthly rest for a maximum of three years.
 
 # The Company has availed vendor bill discounting facility from banks
 which carry interest between 12% - 14.50% p.a.., and is payable within
 90 days from date of bill discounted.
 
 ## The Company has taken inter corporate loan from JKM Holdings Private
 Limited, which carry interest @ 14.75% p.a.  and is repayable on 15
 April 2012.
 
 * Shares pledged with State Bank of India, London and Punjab National
 Bank (International) Limited, London, for availing loan facilities by
 JKM Global Pte Limited, Singapore and Dynamatic Limited, UK, both being
 subsidiary companies.
 
 * Pertains to various expenses incurred by the Company such as
 professional and other ancillary charges towards acquisition of shares
 of Eisenwerk Erla GmbH, Germany, through its step subsidiary, which do
 not qualify for cost of investment as envisaged in Accounting Standard
 (AS) 13 -''Accounting for Investments''.
 
 2. Contingent liabilities
 
 The details of contingent liabilities are as under:
 
                                        As at          As at
 Particulars                        31 March 2012   31 March 2011
 
 Financial guarantee                     19,423         7,570
 
 3. Lease transactions
 
 a) The Company is obligated under cancellable operating leases for
 office, residential facilities and vehicles. Lease rental expense under
 cancellable operating leases during the year was Rs.237 lacs (previous
 year Rs.190 lacs).
 
 b) The Company is obligated under non-cancellable operating leases for
 plant & machinery.
 
 Lease rental expense under non-cancellable operating leases during the
 year was Rs.53 lacs (previous year Rs. Nil).
 
 Notes:
 
 1.  Closing stock is after adjustment for shortage / excess, write-off,
 etc.
 
 2.  The individual item of these are less than 10% of turnover.
 
 3.  Figures in brackets relate to previous year.
 
 4.  Turnover is gross of excise duty.
 
 Warranty provision is utilised to make good the amount spent on spares,
 labour, and all other related expenses on the event of failure of
 automotive products. All the amounts are expected to be utilised in the
 ensuing year. Outflows are expected to maintain the same trend as that
 of past years. No amount is expected as a reimbursement towards this
 cost.
 
 4.  Segment information
 
 Information about Primary Business Segments:
 
 The business segment has been considered as the primary segment. The
 Company is organized into five main business segments, namely:-
 
 - Hydraulic and Precision Engineering (HPE) - comprising hydraulic
 pumps, hand pumps, lift assemblies, valves and power packs
 
 - Aluminium Castings (AC) - comprising castings for automotive
 components
 
 - Automotive Components (AUC) - comprising case front, water pumps,
 intake manifolds and exhaust manifold
 
 - Aerospace (ASP) - comprising airframe structures, precision
 aerospace and components
 
 - Wind farm (WF) - generation of power through wind energy
 
 Segment revenue, assets and liabilities have been accounted for on the
 basis of their relationship to the operating activities of the segment
 and amounts allocated on a reasonable basis.
 
 5.  Derivative instruments
 
 As of March 31, 2012 the Company has recognized losses of Rs 1,600 lacs
 (2011: 275 lacs) relating to derivative instruments (comprising of
 foreign currency forward contracts) that are designated as effective
 cash flow hedges in the shareholders'' fund.
 
 6.  Dues to Micro, Small and Medium Enterprises
 
 According to the information available with the Company, there are no
 dues payable to Micro, Small and Medium Enterprises as defined under
 the The Micro, Small and Medium Enterprises Development Act, 2006.
 The Ministry of Micro, Small and Medium Enterprises has issued an
 Office Memorandum dated August 26, 2008 which recommends that the Micro
 and Small Enterprises should mention in their correspondence with its
 customers the Entrepreneur''s Memorandum Number as allocated after
 filling of the Memorandum. Further there are no dues payable to small
 scale industries (previous year: Rs.Nil).
 
 7.  These financial statements have been prepared on a going concern
 basis considering support from its bankers in the future at existing
 level, although there has been breach of few covenants of some loans
 for which, the management has initiated the process with banks for
 relaxation.
 
 8.  The Board of Directors in their meeting dated 07 May 2011 had
 decided to demerge the Automotive Division of the Company into JKM
 Erla Automotive Limited (JEAL) (a wholly owned subsidiary of the
 Company) w.e.f. 01 April 2011 and had received No Objection Certificate
 from Bombay Stock Exchange and National Stock Exchange Limited.
 
 Taking into consideration the tight timelines available for integration
 of multiple corporate structures within the automotive business, as
 well as the financial / tax implications, the Board of Directors
 decided to withdraw the Scheme of demerger in their meeting dated 13
 February 2012. It is proposed to evaluate an appropriate scheme during
 the following year.
 
 9.  Management fee represents the cost with an agreed markup for
 rendering executive management, finance accounting, human resources
 services, legal and other miscellaneous services to its step down
 subsidiaries.